State-controlled Brazilian oil and gas multinational Petrobras launched US$ 2.5 billion of 2020 bonds and US$ 1.5 billion of 2040 bonds, in what might be the largest ever sale of corporate debt by a Brazilian company.
The company is offering the 2020 bonds at a yield of 5.875% and the 2040 securities at a yield of 7%. The proceeds of the bond sale will be used to repay debt outstanding from a US$ 6.5 billion bridge loan that the corporation signed in January.
The oil giant tapped international credit markets for the third time this year as a recovery in Latin America's biggest economy boosts demand for the securities.
Petrobras sold US$ 1.25 billion of 10-year bonds in July in a re-opening of securities it first issued in February.
Petrobras Chief Executive Officer José Sérgio Gabrielli said last month proven oil reserves may more than double in two to three years to as much as 35 billion barrels.
Petrobras plans to invest about US$ 170 billion in the next five years to boost crude output by 53%. The company is spending billions to tap offshore oil deposits including the Tupi field, the largest discovery in the Americas since Mexico's Cantarell in 1976.
Banco Santander SA, Citigroup Inc., HSBC Holdings Plc and JPMorgan Chase & Co. arranged the bond sale, said a person familiar with the transaction.